29/01/2023(Nasdaq), Kuala Lumpur - Malaysian palm oil futures extended gains on Monday for a third consecutive session, underpinned by worries that floods would hurt output in the world's second largest producer.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 70, or 1.79%, to 3,972 ringgit ($937.68) a tonne in early trade, hitting its highest since Jan. 11.

FUNDAMENTALS

* Farmers in Malaysia's southern state of Johor are worried that stagnant flood waters would affect their palm oil yields, after heavy rains last week displaced thousands of people in several states, according to state news agency Bernama.

* Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 2.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices climbed on tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand. O/R

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* Palm oil may bounce more towards 3,980 ringgit, as it has broken a resistance at 3,888 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares edged higher into a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go. MKTS/GLOB

DATA/EVENTS

0900 Germany GDP Flash QQ SA Q4

0900 Germany GDP Flash YY NSA Q4

($1 = 4.2360 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-climbs-for-third-day-as-production-seen-hit-by-floods